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In the future, payments, loans, and deposits are likely all commoditised. They are frictionless and digital, driving down the opportunities for banks to charge fees and interest. So, how can banks continue to provide value to people?
One way is by improving the payment experience as a whole. Exactly how the payment happens or is initiated is not so important anymore. Instead, the real value comes from special offers, rewards, storage of receipts, warranty information, or perhaps even allowing for pre-payment and payment-by-instalment.
In the future, banking apps will also have to handle online e-commerce, point-of-sale, and SCA using an omnichannel model where the same singular app does everything. For example, while MasterCard and Visa represent traditional card schemes, the future may be marked by fully digital payment services that don’t involve traditional cards.
It is hard to predict who will be in charge of the payments in the future. Will it be banks, issuers, merchants, or platforms such as Google or Apple? One thing is for sure – in the future, it won’t just be about making payments as cheaply and as quickly as possible.
Be sure to read the full article at okaythis.com/blog.
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